Every December we sit down with clients for year-end insurance reviews. This year we got to wondering: what if the most famous small-business owner in the world walked through our door? He runs a seasonal manufacturing and shipping operation, drives an unusual vehicle in terrible weather and lives in a centuries-old home in an extreme climate. On paper, Santa Claus is a risk manager’s dream assignment. Here’s how his review might go.

Item One: The Sleigh

We’d start with the vehicle. Santa’s sleigh is admittedly not something most insurers would know how to classify, and for the purposes of this story we’ll set aside the question of whether flying reindeer count as horsepower. But the risks he faces are surprisingly familiar to any driver who goes out in winter.

Tight landings and rooftop scrapes

Squeezing onto a steep roof in a crosswind is a recipe for clipping a chimney. In the everyday world, hitting another vehicle or an object like a pole, mailbox or garage door is what collision coverage is designed for. It can help pay to repair your own vehicle, after your deductible, regardless of who caused the accident.

Ice, wind and flying debris

A frozen wreath catching the windshield at altitude isn’t a collision in the usual sense. For drivers on the ground, damage from things like falling branches, hail, fire, theft or hitting a deer typically falls under comprehensive coverage. Many policies also handle windshield and glass repair under this part of the policy.

Elves on the runners

Passengers riding where they shouldn’t is a liability waiting to happen. If someone in your vehicle is hurt, medical payments or personal injury protection, depending on your state, can help with medical bills and, in some cases, lost wages. Liability coverage protects you if you’re responsible for injuring someone else or damaging their property.

Item Two: The Workshop

Santa may think of himself as a gift-giver, but from an insurance perspective he runs a manufacturing plant, a warehouse and a global logistics company, all with a hard deadline of December 24. That calls for business coverage, and plenty of it.

• Workers’ compensation. Sharp tools, heavy lifting and long hours during the busy season mean injuries happen, even to cheerful elves. Workers’ comp generally helps cover medical costs and lost wages for employees hurt on the job, and many states require it once you have employees.
• Commercial property. Picture an excited reindeer crashing into the break room and flooding the shop with eggnog. Commercial property insurance can help repair the building and replace damaged equipment and inventory after a covered loss.
• Business income. If a covered loss shuts down production for a while, business income coverage may help replace lost earnings and pay ongoing expenses until the doors reopen.
• Cyber protection. A naughty-and-nice list with names and addresses of every child on earth is exactly the kind of personal data criminals want. Cyber coverage can help a business respond to a data breach, including notification costs and recovery.
• General liability. If a visitor slips on an icy walkway outside the workshop, general liability can help with the costs of a resulting claim.

Most real small businesses don’t need to protect reindeer, but nearly all of them have some version of these exposures. A business owner’s policy often bundles property and liability together, with other coverages added as needed.

Item Three: The Claus Household

A home that’s been in the family for centuries sees its share of mishaps. Here’s how a homeowners policy might help Mr. and Mrs. Claus, and you.

The fudge incident

Candy-making on a crowded stovetop can end in a kitchen fire. Dwelling coverage on a homeowners policy can help pay to repair fire and smoke damage to the structure, from scorched cabinets to soot-stained walls, subject to your deductible and policy terms.

A stay somewhere else

If a covered loss makes the house unlivable during repairs, many policies include additional living expense coverage, sometimes called loss of use. It can help with reasonable hotel, meal and other costs above your normal spending while you’re displaced.

The collections

Everyone has something they treasure. Personal property coverage helps protect belongings against covered events like fire and theft, but valuable items such as jewelry, art, firearms or collectibles often have limited coverage unless they’re scheduled separately. If Santa’s prized collection of antique toys is worth more than a typical policy limit, he’d want to list it individually.

Item Four: Life Insurance

Santa doesn’t appear to age, which makes him the rare client who can skip this conversation. The rest of us aren’t so lucky. If people depend on your income or the work you do at home, life insurance can be one of the most meaningful gifts you give them, even if it never comes wrapped in a bow.

This is a lighthearted, fictional story meant to illustrate how common coverages work. Coverage varies by insurer, policy and state; review your own policy or talk with a licensed agent about your situation.